By Lee Harris,Cristina Criddle
Publication Date: 2025-11-23 05:00:00
Major insurers are seeking to exclude artificial intelligence risks from their corporate policies as companies face billions of dollars in claims that could arise from the rapidly evolving technology.
AIG, Great American and WR Berkley are among the groups that recently sought permission from U.S. regulators to offer policies that exclude liabilities tied to companies that use AI tools such as chatbots and agents.
The insurance industry’s reluctance to provide comprehensive insurance coverage is due to companies rushing to adopt cutting-edge technology. This has already led to embarrassing and costly mistakes when models “hallucinate” or make things up.
An exclusion proposed by WR Berkley would bar claims related to “any actual or alleged use” of AI, including any products or services sold by a company that “incorporates” the technology.
In response to an inquiry from the Illinois Insurance Regulatory Commission about the exclusions, AIG said in a filing that generative AI is a “broader…”